|7385 W Hwy 50
Salida, CO 81201
|Now May Be The Best Time To Invest
Salida - Buena Vista - Chaffee County - Collegiate Peaks area - Arkansas Valley - San Luis Valley
With some recent media reports about real estate losses, housing slumps and home price
declines, it can be easy to lose perspective.
The bottom line is this: If you have good credit history, now is a great time to invest in real
estate. Rates are at the lowest levels in years and while lending practices have tightened,
those with good credit and payment history are more desirable to lending institutions than
ever. The problem, or "crisis" stems from the portions of the sub-prime market, where
lenders over extended credit, often fraudulently, to buyers who were destined to default
when faced with increasing payments on adjustable rate loans.
The impact of the reported billions of dollars in loses from these foreclosures has an
obvious negative effect on the economy and has led to tightening of lending practices and
regulations. The only way for lenders to recover is to make more good loans. Thus, those
with good credit and payment history are sought after by lenders.
While the headlines focus on the impact this has had on national and global financial
markets, it is important to remember that real estate market conditions are like the weather
forecast – the local conditions are much more meaningful than national data. In many
areas, this may be the best time in years to buy a home. With fixed rate mortgages at
historical lows, smart and serious investors look at the long term. Those investing
in a home and keeping it for a typical holding period of six to 10 years will likely
see their investment pay off financially.
For those who have been on the fence regarding purchasing a new home, please contact
me for more information about the opportunities in this area.